Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure

GOODWILL AND OTHER INTANGIBLE ASSETS

The following table shows the changes in the carrying amount of goodwill for the years ended December 31:


	2021		2020
Balance at beginning of year	$	550,270	$	535,979
Goodwill acquired	103,882		6,169
Foreign currency translation	(5,530)		8,122
Balance at year end	$	648,622	$	550,270

Goodwill and indefinite-lived assets are reviewed for impairment on an annual basis in the fourth quarter. The Company completed its impairment review and determined that there had been no impairment of these assets through December 31, 2021. The Company identified no triggering events or other circumstances which indicated the carrying amount of goodwill or intangible assets may not be recoverable.

The components of other intangible assets as of December 31 are as follows:


	2021						2020
	Gross Amount		Accumulated Amortization		Intangibles, Net		Gross Amount		Accumulated Amortization		Intangibles, Net
Customer relationships	$	282,470	$	(79,782)	$	202,688	$	201,445	$	(68,319)	$	133,126
Proven technology and patents	115,680		(56,305)		59,375		78,312		(52,138)		26,174
Tradenames (finite life)	8,206		(3,731)		4,475		4,896		(3,444)		1,452
Tradenames (indefinite life)	35,949		—		35,949		35,595		—		35,595
Other	10,641		(5,678)		4,963		5,215		(4,777)		438
	$	452,946	$	(145,496)	$	307,450	$	325,463	$	(128,678)	$	196,785

The Company recognized amortization expense associated with the above intangible assets of $22.5 million, $15.7 million, and $15.1 million for the years ended December 31, 2021, 2020, and 2019, respectively. The annual aggregate amortization expense based on the current balance of other intangible assets is estimated at $26.1 million for 2022, $24.8 million for 2023, $22.7 million for 2024, $21.8 million for 2025, and $19.6 million for 2026. The finite-lived intangible assets are amortized on a straight-line basis over periods ranging from 3 to 45 years. The straight-line method of amortization

reflects an appropriate allocation of the cost of the intangible assets to earnings in proportion to the amount of economic benefits obtained by the Company in each reporting period. Purchased intangibles amortization was $21.6 million, $16.3 million after tax, $14.9 million, $11.2 million after tax, and $14.3 million, $10.8 million after tax, for the years ended December 31, 2021, 2020, and 2019, respectively.

In addition to the above amortization, the Company recorded amortization expense associated with capitalized software, which is included in property, plant, and equipment in Note 8, of $40.4 million, $40.7 million, and $34.4 million for the years ended December 31, 2021, 2020, and 2019, respectively.